IBM Makes Another Acquisition

In a recent press release, International Business Machines Corporation (IBM), disclosed that it has acquired Ounce Labs, Inc., a privately-held company based in Waltham, Massachusetts. Software produced by Ounce Labs finds security flaws and resolves compliance issues faced by companies. It is a leading application security company and equips the customers with tools that enable them to reduce their threat exposure and avert data breach disasters.
 
From now on, Ounce Labs software will be offered in combination to IBM Rational AppScan family of Web application security and compliance testing solutions. This new product will offer companies a reasonable solution, which will help them to correct security vulnerabilities in applications before they go live.

We believe that IT systems are extremely vulnerable to security and compliance threats. Consequently, companies will be eager to find a cost effective solution, which can protect their application software from being invaded by outsiders.
 
The Ounce Labs acquisition is in line with IBM’s strategy of strengthening its software and services divisions. IBM makes most of its money from software and services. The company has acquired around 50 software companies since 2003, all of which have proved profitable. Management did not declare the monetary involvement in this acquisition, but believes that Ounce Labs will add value to its existing product portfolio.
 
We feel that this acquisition of IBM will help customers quickly respond to many of the emerging regulation and compliance issues, such as the Data Security Standard to be maintained in credit card payments or the security standards to be maintained under the Health Insurance Portability and Accountability Act.

Read the full analyst report on IBM